Office for small businesses: how many licenses do you really need?
Office is licensed per device, not per person. A calculated example from a six-person company shows why this often means four licenses instead of six.
On this page
Short answer: Microsoft Office is licensed per device, not per person. Therefore, a small business needs as many perpetual licenses as there are workstations with Office installations. An employee with a desktop and a notebook requires two licenses. Shared computers only need one.
The basic rule: per device, not per head
With perpetual Office licenses, the installation is tied to a single device. This fundamentally differentiates them from Microsoft 365, where one user license covers multiple devices.
For planning, this means: Count the computers on which Word, Excel, or Outlook will run, not the employees.
Example calculation: Trades business with six people
A typical real-world scenario:
- 2 office workstations (accounting, dispatch) – 2 licenses
- 1 notebook for management – 1 license
- 1 shared computer in the workshop – 1 license
- 3 fitters who work exclusively remotely and do not need Office – 0 licenses
Result: 4 licenses instead of the often assumed six. For Office 2024 Home & Business at €236.99, this amounts to approximately €948 once-off, rather than ongoing subscription costs for six users.
For about five similar workstations, it's worth considering Office 2024 Standard as a volume license – the same programs, but without OneNote.
“We had planned for six licenses, but in the end, we only needed four – the three fitters only work via tablet anyway." This is how a master craftsman describes how an honest inventory of workstations significantly reduced acquisition costs.
The three most common planning errors
1. Too many licenses for mobile employees
If you only read emails on your smartphone, you don't need a perpetual Office license. Mobile apps and the web interface cover that.
2. Too few licenses for dual devices
The classic mistake: One person uses a desktop and a notebook, but only one license was purchased. This is under-licensing and will be flagged in an audit.
3. Private licenses in the workplace
Home & Student may not be used commercially – not even on a private notebook in a home office. For business use, you need at least Office Standard.
Which edition for which workplace
Not every workplace needs the same equipment. This breakdown saves the most in practice:
- Clerical work, accounting: Office 2024 Standard – Word, Excel, PowerPoint, and Outlook are sufficient.
- Management, sales: Home & Business because of OneNote and Outlook.
- Database or layout work: Professional Plus because of Access and Publisher – but only where it's truly needed.
The extra cost for Professional Plus is rarely worth it for the entire team. A mixed setup is almost always more cost-effective.
Next step
Count your workstations, assign an edition to each, and check the total against the current Office 2024 prices. For larger quantities, a brief consultation is worthwhile – we'll check availability and documentation beforehand.
The comparison calculator also clarifies which edition suits which workstation. The basics of license types are explained in the Office guide.
